Massachusetts Mutual Life Insurance Company approved the payment of an estimated $1.39 billion in dividends to eligible participating policy owners in 2013, the highest payout in the company's 161-year history, the company announced today.
The dividends to be paid in 2013, approved by MassMutual's board of directors, include a dividend interest rate of 7 percent on all eligible participating life insurance policies, a rate that remains unchanged from the prior year, the company states.
The $1.39 billion payout represents an increase of more than 4 percent over the approved estimated payout of $1.33 billion in 2012. In tandem with the payout, MassMutual also reports as of Sept. 30, “very strong levels” of surplus ($12.7 billion) and adjusted capital ($14.4 billion). The 2013 payout marks the 15th consecutive year that MassMutual's estimated payout exceeds $1 billion.
By the end of 2012, the company says it expects to have paid $20 billion in dividends over the past 20 years.
Of the $1.39 billion dividend, an estimated $1.36 billion has been approved for eligible participating policy owners who have purchased whole life insurance, the company's core product. More than 97 percent of eligible participating whole life policies will receive a dividend in 2013 that is the same or higher than they received in 2012, MassMutual adds.